Bob Goodlatte to deliver online sales tax plan

House Judiciary Committee Chairman Bob Goodlatte is expected to release a series of principles on Wednesday, outlining concerns and priorities for a bill that would allow online retailers to collect sales tax, several sources told POLITICO.

The principles — described during three briefings Tuesday — are expected to be broad while detailing some of the ways the Virginia Republican would like to simplify the bill that passed the Senate in May, the sources said. They also are expected to offer more details on how businesses could collect and remit sales taxes for online purchases.

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Goodlatte has expressed concerns that the Senate bill is still too burdensome for small businesses.

Briefings for Judiciary Committee staffers and trade groups focused on the issue were scheduled for Tuesday to give Goodlatte’s team a chance to detail seven points. Separate briefings were held for supporters and opponents of the issue.

In an interview with POLITICO on Tuesday, Goodlatte said the principles “will be released tomorrow,” but declined to give further comment.

The principles specify the burdens for online and brick-and-mortar retailers must be equal. The staff conducting the briefings said there should be no precedent for collecting taxes.

It is unlikely Goodlatte will release anything resembling legislation because broad concepts give him the ability to maneuver within the House Republican Conference to build support.

“He very much wants to build consensuses on this issue. He wants to find that sweet spot the majority of people are comfortable with,” said Jennifer Platt, a vice president of federal operations for the International Council of Shopping Centers.

It is unclear whether Goodlatte plans to introduce new legislation or will try to work within the confines of the Senate-passed bill to address his concerns. But a supporter of the bill said his side was very “happy” with the path forward that the principles provide.

A representative from a trade organization that has long opposed the measure said that the current draft of Marketplace Fairness is “dead” and there would need to be a new draft to mirror Goodlatte’s principles.

The principles would mark the first step forward in the online sales tax battle since May when the Senate passed the Marketplace Fairness Act. That bill was opposed by Senate Finance Committee Chairman Max Baucus (D-Mont.), who wanted to address the issue during tax reform, and other senators from states that don’t charge a sales tax.

The issue has divided Republicans in the House, slowing progress on legislation.

Fault lines have emerged between Republicans like Rep. Steve Womack (R-Ark.) who see the bill as a states’ rights measure that will help fill depleted coffers and Rep. Thomas Massie (R-Ky.), who wrote in a June letter that the measure is an “unprecedented” violation of state sovereignty.

Supporters, including online retailer Amazon, and opponents, backed by eBay, view on-the-fence House Republicans as vital to passing or defeating the measure. Representatives from Target, the Chamber of Commerce, Amazon and Net Choice were all present at the briefings on Tuesday.

Jason Brewer, the vice president for communications and advocacy at the Retail Industry Leaders Association, which supports the online sales tax, expects an “ideological battle.”

“We were successful in the Senate because we made the case that: A) this is not a tax increase; and B) in a true free market, conservatives believe that everyone should be treated equally,” he said. “It’s a powerful argument to be made now.”